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Federal Land Transfer to Oregon
cline butte
Cline Butte, Central Oregon In-Lieu Lands photo Nancy Pustis
A 1991 U.S. District Court judgment ruled that the State of Oregon was owed just over 5,202 acres of federal public domain lands (Bureau of Land Management) in order to satisfy its statehood claims.
These lands are the last remnant of the Section 16 and 36 Common School trust land claims. This judgment came from a 1968 case brought against the BLM by the State and the heirs of the Baldwin Trust.
Since the judgment was final in 1991, the Department of State Lands (DSL) has been working with the Baldwin Trust and the BLM.
About 638 acres in the LaPine area were transferred to the State and then to the Trust in the early 1990’s.
In 1995, the State of Oregon entered into a memorandum of understanding  with the BLM that established procedural guidelines and identified the types of lands DSL would consider for selection as Common School Trust Lands. The character of properties to consider were large blocks of land offering a significant return on the investment, such as those in or near an urban growth boundary or an area of rapid growth or development.
By 1995, DSL had selected approximately 1,200 acres of in-lieu lands--all within Deschutes County and BLM’s Prineville District. This included the first selection made solely for the Common School Fund, the 640-acre Stevens Road Tract at the east edge of Bend. 
In 2003, DSL completed selection and transfer of another 145 acres of land in Jackson Co. to the Baldwin Trust.
The Bureau of Land Management deeded 945 acres in South Redmond to DSL in April 2007; 199 acres in Douglas County (Baldwin Trust) and 240 acres at Cline Buttes near Redmond in 2008; and 640 acres at Juniper Canyon in Crook County in 2009.  
To satisfy most of the remaining acreage due the state (about 1,594 acres), DSL selected 1,577 acres at Deschutes Market Road north of Bend.  The BLM rejected this selection in 2009.  The department now is working on selecting other suitable in-lieu acreage to complete the land transfer.